Texas Insurance Companies Face Investigation for Excess Complaints

Larry Randall is among thousands of Texas drivers, who were involved in automobile accidents last year, and were not at fault for. A driver sideswiped Randall’s vehicle, and forced him off the road in May of 2009. The driver had a policy through Loya Insurance, which is now, deemed as one of the worst insurance companies in handling claims.

After the accident, Randall contacted Loya Insurance to settle the damage to his car. Initially, Loya Insurance took no responsibility for their insurer, but later claimed they would only be paying $270 for the damages and expenses. According to Randall, the damages and expenses totaled nearly $1,700.00. The company ignored all communication with Randall from the beginning and then finally sent him a check for $300.00.

“When’s the last time you heard of major damage to the side of a car being fixed for $300.00?” Randall said. “Loya is one of two large auto insurers, that has a complaint record well above the state average in 2009, according to a new listing of justified complaints handled by the state Insurance Department,” He added.

Most of the complaints came from Texas drivers claiming, delays in the processing claims, inadequate offers, low settlements, taking no responsibility for the actual claims, and disputes regarding the liability. According to the Dallas Morning News, 10 out of 25 of the largest auto insurers in the state had records proving that their customer service was actually worse-than-average. The companies at the top of the list, Loya Insurance and Old American County Mutual are now under investigation by the Insurance Department, under allegations of violating state regulations.

Loya and Old American County Mutual are now under investigation by the Insurance Department, under allegations stating that the companies violated state regulations. According to Edger Meza, the vice president of Loya Insurance Company, most of the complaints are stemmed from the “difference over the market value of the cars that are totaled, and from the accidents involving a person driving a Loya-insured vehicle who has been excluded from coverage.”

Loya and Old American collected $822 million alone last year in premiums. These Insurance companies get their most business from lower-income drivers, who have trouble obtaining insurance. The Insurance Department is currently looking into this matter, and will review complaints in order to identify issues concerning the companies. A hearing on these allegations is schedules later this year.